A group of officials from Brussels recently took a trip to Stockholm to study the thriving stock exchange there, compared to the rest of Europe. The Nasdaq Stockholm stock exchange has been in high demand and attracts many foreign companies eager to list in Sweden.
During the trip, the management of the Stockholm Stock Exchange presented the local capital market ecosystem and highlighted how many small and medium-sized companies have chosen to list on the exchange. In contrast, other European countries, including London, are experiencing low IPOs and declining trading activity.
Sweden’s active capital market has attracted attention due to its favorable conditions for companies looking to list their shares. The country has implemented incentives that have resulted in over 500 companies being listed on the Stockholm Stock Exchange in the past eleven years, surpassing countries like France, Germany, Holland, and Spain combined.
In comparison, Helsinki has seen only a few IPOs in recent years, highlighting the difference in vibrancy between Sweden and Finland’s stock markets. Swedish pension funds have played a significant role in listing activities by emphasizing domestic shares and contributing to the success of the stock market ecosystem.
Unlike Sweden, however, countries like Britain and Finland have experienced a decline in domestic investments from pension funds due to slow price development of domestic shares. Efforts are being made in Europe to stimulate the stock market through regulatory changes and encouraging investments in domestic stocks following Sweden’s successful model.